ECON 110 ZIRLOTT TEST 1 STUDY
GUIDE EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
Economics - ANS the study of how society manages its scarce resources
microeconomics - ANS study of how households and firms make decisions and how they
interact in markets; ti examine behavior and operation of the individual consumers and firms
that make up economy.
macroeconomics - ANS study of economy wide phenomena, including inflation,
unemployment, and economic growth
equality / equity - ANS the property of distributing economic prosperity uniformly among the
members of society
scarcity - ANS the limited nature of society's resources
efficiency - ANS the property of society getting the most it can from its scarce resources
tradeoff - ANS to achieve greater equality. getting more of one good requires sacrificing some
of the other
@2026 ALLRIGHTS RESERVED 1
, going to a party the night before your midterm leaves less time for studying -> what is this an
example of - ANS tradeoff
having more money to buy stuff requires working longer hours, which leaves less time for
leisure -> what is this an example of - ANS tradeoff
protecting the environment requires resources that could otherwise be used to produce
consumer goods -> what is this an example of - ANS tradeoff
opportunity cost - ANS whatever must be given up to obtain some item
give an example of opportunity cost - ANS college athletes who can earn millions if they drop
out of school and play professional sports are aware that the opportunity cost of their attending
college is very high. Not surprising they often decide that the benefit of a college education is
not worth the cost.
rational people - ANS people who systematically and purposefully do the best they can to
achieve their objectives
thinking at the margin - ANS make decisions by evaluating costs and benefits of marginal
changes (incremental adjustments to an existing plan)
when a student considers whether to go to college for an additional year, he compares the fees
and foregone wages to the extra income he could earn with the extra year of edu. -> what is this
an example of - ANS thinking at the margin
@2026 ALLRIGHTS RESERVED 2
GUIDE EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
Economics - ANS the study of how society manages its scarce resources
microeconomics - ANS study of how households and firms make decisions and how they
interact in markets; ti examine behavior and operation of the individual consumers and firms
that make up economy.
macroeconomics - ANS study of economy wide phenomena, including inflation,
unemployment, and economic growth
equality / equity - ANS the property of distributing economic prosperity uniformly among the
members of society
scarcity - ANS the limited nature of society's resources
efficiency - ANS the property of society getting the most it can from its scarce resources
tradeoff - ANS to achieve greater equality. getting more of one good requires sacrificing some
of the other
@2026 ALLRIGHTS RESERVED 1
, going to a party the night before your midterm leaves less time for studying -> what is this an
example of - ANS tradeoff
having more money to buy stuff requires working longer hours, which leaves less time for
leisure -> what is this an example of - ANS tradeoff
protecting the environment requires resources that could otherwise be used to produce
consumer goods -> what is this an example of - ANS tradeoff
opportunity cost - ANS whatever must be given up to obtain some item
give an example of opportunity cost - ANS college athletes who can earn millions if they drop
out of school and play professional sports are aware that the opportunity cost of their attending
college is very high. Not surprising they often decide that the benefit of a college education is
not worth the cost.
rational people - ANS people who systematically and purposefully do the best they can to
achieve their objectives
thinking at the margin - ANS make decisions by evaluating costs and benefits of marginal
changes (incremental adjustments to an existing plan)
when a student considers whether to go to college for an additional year, he compares the fees
and foregone wages to the extra income he could earn with the extra year of edu. -> what is this
an example of - ANS thinking at the margin
@2026 ALLRIGHTS RESERVED 2
